The shifting landscape of business valuation and corporate regulations

Press release

4 DEC 2017

The shifting landscape of business valuation and corporate regulations

To address increasing concerns for fair value measurement for corporate entities and intangible assets, we recently convened leading corporate finance and valuation firms, and statutory bodies at the first RICS Business Valuation Conference.

Over 200 institutional investors, corporate executives and business valuers examined the challenges and opportunities around business valuation at the in Conrad Hong Kong Hotel.

Discussions focused on the practices, regulations, risks and liabilities of business valuation and corporate regulation. Industry leaders analysed financial reporting, competitor benchmarking, and addressed the need to establish and uphold an international business valuation standard.

Advancing business valuation standards

Being a globally recognised organisation, RICS is positioned to gather key stakeholders in capital markets and from leading organisations around the globe to cooperate in order to develop solutions that deliver confidence and enhance transparency across the industry.

RICS professionals have been collaborating with regulators in major financial centres in the US, UK, and Hong Kong to support the Securities and Exchange Commission (SEC) in advancing business valuation standards to protect investors' and the public's interest. Together, with today's professionals and the expertise of those international professional bodies, RICS plans to develop a blueprint for a more transparent financial environment in Hong Kong and across the globe.

The next stage in the process is to have a professional body in Hong Kong that represents all valuers, issues standards and enforces them in the public interest.

An industry perspective

To enhance business valuation quality from an industry perspective, RICS Global Director of Business Valuation Mr Steve Choi said that the Certified in Entity and Intangible Valuations (CEIV) credential is designed to enhance consistency and transparency in the fair value measurement process. Key components of the new credentialing programme include ongoing quality oversight and compliance with a mandatory performance framework that helps define how much work is necessary to provide supportable and auditable fair value measurements.